The Leadership Styles and the Financial Problems in Romanian’s Companies
The Leadership Styles and the Financial Problems in Romanian’s Companies

Summary/Abstract: New business models no longer rely on expectations of increased consumption, but rewarding the saving of resources and penalizing the waste of them. Businesses based on stable cash-flows rather than speculative businesses are the ones that survive in times of crisis. The current economic environment is characterized by several features, namely: consumers are more careful with spending and seek substitutes for expensive products; economic downturn trend creates the need for new products and services such as adult education or corporate data security; consumers are looking for and choose products that provide the best value for the money spent on them. Economic and financial failure of many Romanian companies has been highlighted in recent years by the evolution of their insolvency, as emphasized the research leads by Co face Romania: the coverage of deteriorating equity was made by attracting additional debt; attracting capital was made especially over short terms with flick suppliers credit; more than half of long-term investments were unprofitable; constant increase of the average day’s sales in receivables showed an inadequate policy of commercial risk. In this context, it is important to reveal how leadership styles applied in Romanian companies has led to the development and worsening of their financial problems. The main issues relate to selective rotation pay providers according to the volume of transactions, business relations history,future interests or, simply, bargaining power and importance of each supplier.

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